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If Republicans on Capitol Hill get their way, the IRS’s free direct tax-filing tool is going away for good.
A 389-page tax bill released by House Republicans on Tuesday includes a provision directing the Secretary of the Treasury to terminate IRS Direct File within 30 days of the bill’s passage.
It’s not a huge surprise. The program already seemed to be in trouble, with a Treasury official telling BI in April that it was a failed and disappointing program.
Republicans have argued that the tool, which was rolled out in 2024, is wasteful and an example of government overreach. Democrats, on the other hand, have contended that the program represents exactly the kind of government-efficiency project that DOGE should be interested in.
The bill, a key element of what President Donald Trump and congressional Republicans have deemed the “One Big Beautiful Bill,” is set to be marked up in the House Ways and Means Committee on Tuesday.
The fiscal bill, the centerpiece of Trump’s legislative agenda, could face tweaks as Republicans in both chambers hash out differences among themselves over the next several weeks.
The White House and spokespeople for the Ways and Means Committee did not immediately respond to a request for comment.
The bill also allocates $15 million to study the creation of a new public-private partnership to provide free tax filing for up to 70% of taxpayers. That program would replace both IRS Direct File and other free tax filing services.
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